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Copyright of KOF Analysen is the property of ETH Zurich and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Copyright of KOF Analysen is the property of ETH Zurich and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Hans Gersbach, co-director of KOF, discusses the potential and risks of artificial intelligence (AI) and how Switzerland can position itself as a global AI hub through smart regulation. He explains that while economists generally support free markets, regulation is necessary for AI due to potential harm to health and safety, infringement of fundamental rights, and ethical considerations. Gersbach suggests that Switzerland has four options for regulating AI, including adopting parts of the European AI Act while aligning it with Swiss requirements. He also emphasizes the need for innovation-friendly regulation and addressing the tendency towards monopolies in the AI industry. Gersbach concludes by stating that a moratorium on AI development is not feasible, and appropriate regulation is a better approach to mitigate adverse trends. [Extracted from the article]

This article analyzes the recent interest-rate decisions in the eurozone, the United States, and Switzerland. The Swiss National Bank (SNB) has cut interest rates due to falling inflation and the rise in the Swiss franc exchange rate. The article also discusses the interest-rate outlook for Switzerland and the eurozone, as well as the factors influencing monetary policy, such as political risks. The US Federal Reserve has not yet tightened interest rates due to a robust economy but slowly falling inflation. The article concludes by discussing the role of political factors in monetary policy. [Extracted from the article]

Artificial intelligence (AI) has recently experienced a breakthrough with applications like ChatGPT and Midjourney due to factors such as the availability of massive amounts of data, computing power, and advancements in neural networks and language models. The impact of technological progress on the labor market depends on the tasks involved in a job and how they can be replaced or changed by AI. Jobs that require intermediate cognitive skills, such as copywriters and administrative staff, may be at risk of job losses. However, professions that require extensive systemic knowledge, like scientists and doctors, will continue to exist with AI support. It is important for society to assist those who lose their jobs due to AI through social policy and retraining. The education and training system should focus on teaching critical thinking rather than just programming, and there should be a better understanding of how technology can be integrated into society. AI is considered a technological revolution that has the potential to change various sectors. While AI has superior capabilities in certain areas, humans still possess qualities like empathy, emotions, and social contextualization that are important in dealing with others. Europe, including Switzerland, is striving to compete with the US and China in terms of AI technology, but faces challenges in catching up. However, Switzerland is advanced in AI usage, with a well-developed start-up culture and successful knowledge transfer between universities and businesses. [Extracted from the article]

The article discusses the challenges facing the Chinese economy, particularly the real-estate crisis and its impact on the Swiss economy. The bursting of the real-estate bubble has disrupted growth in China and has led to a loss of trust in the government. Other factors contributing to the economic crisis include strict COVID-19 restrictions, the regulation of tech companies, and youth unemployment. The lack of trust affects consumption and investment, which are crucial for economic growth. The article suggests that moderate state intervention and diversification of supply chains and foreign markets could help alleviate the crisis. The Swiss economy is directly affected by China's crisis due to reduced exports, particularly in the luxury watch industry. However, the Chinese real-estate crisis is not expected to trigger a global financial crisis. While some observers believe that China is facing a growth ceiling, the article argues that China still has strong growth potential if it can address its real-estate crisis. The article concludes by highlighting the dependence of Swiss industry on China and the need for diversification. [Extracted from the article]